If an Externality Is Present in a Market, What May

question 208

Multiple Choice

If an externality is present in a market, what may enhance economic efficiency?

• A) government intervention
• B) increased competition
• C) better informed market participants
• D) more defined property rights

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Definitions:

Neutrons

Subatomic particles found in the nucleus of an atom, having no electrical charge and a mass slightly greater than that of protons.

Protons

Positively charged subatomic particles found in the nucleus of an atom, contributing to the atom's mass and defining the element's atomic number.

Electrons

Electrons are subatomic particles with a negative electric charge, found in all atoms and acting as the primary carrier of electricity in solids.

Positive Ions

Atoms or molecules that have lost one or more electrons, resulting in a net positive charge.